How is security guaranteed by Decentralization?
Each node has a full record of the data that has been stored on the blockchain since its inception. If one node has an error in its data it can use the thousands of other nodes as a reference point to correct itself. This way, no one node within the network can alter information held within it. Because of this, the history of transactions in each block that make up the blockchain is irreversible.
If one user tampers with the blockchain’s record of transactions, all other nodes would cross-reference each other and easily pinpoint the node with the incorrect information. This system helps to establish an exact and transparent order of events. That being so, to succeed an attacker would have to hack a large number of nodes (databases/places) on the network. It is fair enough to say that, this is virtually impossible, especially since the number of blockchain users is increasing day after another, and so is their data.
Transparency of Decentralization:
Because of the decentralized nature of blockchain, all transactions can be transparently viewed by either having a personal node or by using Blockchain Explorers which allow anyone to see transactions occurring live. Each node has its own copy of the chain that gets updated as fresh blocks are confirmed and added. This means that if you wanted to, you could track blockchain and its flow wherever it goes.
Difference between Centralized and Decentralized networks:
Decentralized networks are made up of computers, also known as nodes that interact on a direct, user-to-user basis, without the need for third parties. Centralized networks have computers, managed in a single place, which store the data, but the users cannot directly access this data, even if it is theirs.
Within a decentralized network, information is distributed to every single “node” on the network. Each node has an updated copy of all recorded data. In centralized networks, a particular set of computers can be used to store a specific type of data, i.e. there can be different types of data stored on different groups of computers. A centralized network does not guarantee that all the data in each computer is the same, as it can be easily changed by the central authority controlling it.
In a decentralized network, each participating node is independent of the others. In a centralized network, computers can be dependent on each other, as there might be groups of computers assigned to store a particular type of data. So, to get different types of data, computers will have to ‘ask’ from the computers that have them.
Rather than following the instructions of a central authority, decentralized nodes connect using common rules, at the same time maintaining their sovereignty and managing their own privacy. This helps keep the network secure, while also ensuring relatively democratic governance.
In a centralized network, a corrupt entity may enter wrong data and edit, delete or tamper with it. Whereas in a decentralized network, if a node tries to tamper with data, there are thousands of nodes with correct data working around the world to catch the dishonesty.
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